S&P puts McAfee on positive watch

S&P placed McAfee Corp.’s ratings on CreditWatch with positive implications following its agreement to sell its enterprise security business to Symphony Technology Group for $4 billion.

McAfee plans to use $1 billion to repay debt.

“We expect that the announced post-close debt repayment, combined with a strong bookings trajectory in McAfee's remaining consumer franchise, consistent cash generation and stated financial leverage target of under 3x will lead to continued improvement in credit metrics over the planned divestiture horizon,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch by the transaction’s close.

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